- Email: [email protected]
Pentair to merge with Tyco's Flow Control to create US$8bn business
pumpindustry ANALYST
ISSN 1359-6128 April 2012
www.pumpindustryanalyst.com
Pentair to merge with Tyco’s Flow Control to create US$8bn business
P
entair Inc is to combine with Tyco International Ltd’s Flow Control business in a tax-free, all-stock merger. The new merged company will be called Pentair and will be led by Randall Hogan, Pentair’s current chairman and chief executive officer (CEO). The transaction values Tyco Flow at approximately US$4.9 billion, including assumed net debt and minority interest. The merged company has estimated pro forma 2012 revenues of US$7.7 billion and 30 000 employees. “The addition of Tyco Flow perfectly aligns with Pentair’s growth strategy to expand globally, invest in high growth platforms and leverage the Pentair Integrated Management System to generate strong shareholder returns,” said Hogan. “We believe that by combining with Tyco Flow, we can unlock substantial synergies, meaningfully increase our global presence
and better serve our customers with a broader offering and expanded capabilities.” When the deal is completed, Tyco shareholders will own approximately 52.5% of the combined company and Pentair shareholders will own the remaining 47.5%. The combined company will be incorporated in Switzerland, where Tyco is currently incorporated, with main US offices remaining in Minneapolis, Minnesota where Pentair is based. For further information, visit www.pentair.com and www.tyco.com
COMMENT This is a transforming deal for Pentair, doubling revenues and creating a major player in flow, filtration and equipment protection. ■
Hayward Tyler parent secures new financing from India’s McNally Bharat
A
IM-listed Specialist Energy Group plc, which owns Hayward Tyler, is refinancing its business in a deal with Indian engineering group and existing shareholder McNally Bharat Engineering Co Ltd. MBE Mineral Technologies Pte Ltd, the investment subsidiary of McNally Bharat, has agreed to subscribe to 10 million New Ordinary Shares at £0.5, raising £5 million. SEG will look to issue 4 million Additional New Ordinary Shares to acquire 20–24% of MBE Cologne Engineering GmbH, a subsidiary of MBE which makes machinery and components for the material handling and power generation sectors.
The subscription will see MBE’s holding in SEG increase from 25.27% to 41.69%. The deal also includes proposed new borrowing facilities of £12 million from Standard Chartered and MBE. Luton, UK-based Hayward Tyler manufactures specialist pumps and motors for the energy industry. Through McNally Bharat, SEG will have increased access to growth markets like India, Africa and South America, while SEG/Hayward Tyler will help McNally Bharat to expand in China and the US. For further information, visit www.segroupplc.com and www.mcnallybharat.com
Contents Company Profile Crane
5
Graco
6
Company Watch Gardner Denver
7
Gorman-Rupp
7
Idex
8
Met-Pro
8
Robbins & Myers
9
Roper
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
Market Prospects New Product Developments
2–4 14
News Pentair to merge with Tyco’s Flow Control to create US$8bn business
1
Hayward Tyler parent secures new financing from India’s McNally Bharat 1 Sulzer refinances CHF500mn syndicated credit facility
12
Test success for AP1000 reactor coolant pump
12
Pioneer Pump expands Canby HQ
12
Pump market to reach US$45bn by 2017 12 Ebara wins Intel Preferred Quality Supplier Award 13 Energy Recovery repurchases more than 1mn shares
13
Grundfos invests in North American wastewater base near Chicago
16
Aker Solutions expands subsea manufacturing capacity
16
DXP Enterprises makes three acquisitions 16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ISSN 1359-6128/12 © 2012 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.
ISSN 1359-6128 April 2012
www.pumpindustryanalyst.com
Pentair to merge with Tyco’s Flow Control to create US$8bn business
P
entair Inc is to combine with Tyco International Ltd’s Flow Control business in a tax-free, all-stock merger. The new merged company will be called Pentair and will be led by Randall Hogan, Pentair’s current chairman and chief executive officer (CEO). The transaction values Tyco Flow at approximately US$4.9 billion, including assumed net debt and minority interest. The merged company has estimated pro forma 2012 revenues of US$7.7 billion and 30 000 employees. “The addition of Tyco Flow perfectly aligns with Pentair’s growth strategy to expand globally, invest in high growth platforms and leverage the Pentair Integrated Management System to generate strong shareholder returns,” said Hogan. “We believe that by combining with Tyco Flow, we can unlock substantial synergies, meaningfully increase our global presence
and better serve our customers with a broader offering and expanded capabilities.” When the deal is completed, Tyco shareholders will own approximately 52.5% of the combined company and Pentair shareholders will own the remaining 47.5%. The combined company will be incorporated in Switzerland, where Tyco is currently incorporated, with main US offices remaining in Minneapolis, Minnesota where Pentair is based. For further information, visit www.pentair.com and www.tyco.com
COMMENT This is a transforming deal for Pentair, doubling revenues and creating a major player in flow, filtration and equipment protection. ■
Hayward Tyler parent secures new financing from India’s McNally Bharat
A
IM-listed Specialist Energy Group plc, which owns Hayward Tyler, is refinancing its business in a deal with Indian engineering group and existing shareholder McNally Bharat Engineering Co Ltd. MBE Mineral Technologies Pte Ltd, the investment subsidiary of McNally Bharat, has agreed to subscribe to 10 million New Ordinary Shares at £0.5, raising £5 million. SEG will look to issue 4 million Additional New Ordinary Shares to acquire 20–24% of MBE Cologne Engineering GmbH, a subsidiary of MBE which makes machinery and components for the material handling and power generation sectors.
The subscription will see MBE’s holding in SEG increase from 25.27% to 41.69%. The deal also includes proposed new borrowing facilities of £12 million from Standard Chartered and MBE. Luton, UK-based Hayward Tyler manufactures specialist pumps and motors for the energy industry. Through McNally Bharat, SEG will have increased access to growth markets like India, Africa and South America, while SEG/Hayward Tyler will help McNally Bharat to expand in China and the US. For further information, visit www.segroupplc.com and www.mcnallybharat.com
Contents Company Profile Crane
5
Graco
6
Company Watch Gardner Denver
7
Gorman-Rupp
7
Idex
8
Met-Pro
8
Robbins & Myers
9
Roper
9
Diary
15
Dividends
13
Exchange Rates
14
Financial Calendar
14
In Brief
12
Market Prospects New Product Developments
2–4 14
News Pentair to merge with Tyco’s Flow Control to create US$8bn business
1
Hayward Tyler parent secures new financing from India’s McNally Bharat 1 Sulzer refinances CHF500mn syndicated credit facility
12
Test success for AP1000 reactor coolant pump
12
Pioneer Pump expands Canby HQ
12
Pump market to reach US$45bn by 2017 12 Ebara wins Intel Preferred Quality Supplier Award 13 Energy Recovery repurchases more than 1mn shares
13
Grundfos invests in North American wastewater base near Chicago
16
Aker Solutions expands subsea manufacturing capacity
16
DXP Enterprises makes three acquisitions 16
Orders & Contracts
10
People & Appointments
11
Stock Watch
15
ISSN 1359-6128/12 © 2012 Elsevier Ltd. All rights reserved. This journal and the individual contributions contained in it are protected under copyright by Elsevier Ltd, and the following terms and conditions apply to their use: Photocopying Single photocopies of single articles may be made for personal use as allowed by national copyright laws. Permission of the publisher and payment of a fee is required for all other photocopying, including multiple or systematic copying, copying for advertising or promotional purposes, resale, and all forms of document delivery. Special rates are available for educational institutions that wish to make photocopies for non-profit educational classroom use.